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2020-12-31-accounts

Charity registration number: 700817

Masjid E Tauheedul Islam

Report and Accounts

31 December 2020

Masjid E Tauheedul Islam Contents

Page
Charity Information 1
Trustees report 2
Independent examiner's report 4
Statement of financial activities 5
Balance sheet 6
Notes to the accounts 7

Masjid E Tauheedul Islam Charity Information for the period ended 31 December 2020

Address

31 Biknell street Blackburn Lancashire BB1 7JJ

Charity registration number: 700817

Trustees

Mr Faruk Ibrahim Bharucha Mr Yunus Bohra Mr Ali Mohmed Vika

Appointed independent examiner

M A Ibrahim (FCCA)

Accountants

M.A.I (Accountants) Limited 7 St Andrews Street Blackburn Lancashire BB1 8AE

Bankers

Natwest Bank 35 King William Street Blackburn Lancashire BB1 7DL

1

Masjid E Tauheedul Islam Trustees’ annual report for the period ended 31 December 2020

Charity registration number: 700817

The Annual Report is fully SORP compliant and sets out how the trustees have met their obligations.

The Financial Statement is fully SORP compliant and includes the incoming resources and resources expended.

Objectives and activities

The purpose of the charity as set out in its governing document is as follows:

a)To Advance the Islamic religion amongst the residents of Blackburn and to teach the Islamic way of life by the faith and literature set out by the Scholars of the Islamic University of Deoband India in accordance with "Ahle -Sunnat- wal Jamaat

b) advance education including religious education by maintaining and managing a school for girls of the Islamic faith. The activities of the Girls School as stated in the Objectives clause are now vested in the Tauheedul Education Trust.

The main activities undertaken in relation to those purpose are as follows:

The Masjid provides prayer facilities for worshippers who visit the masjid with congregational prayers taking place five times a day. The Masjid provides religious Islamic education to school age children in the evening under the guidance of the Imaams. Nika (marriage) ceremonies and full funeral services are also provided for the local Muslim population.

In setting our objectives and planning our activities our Trustees have given careful consideration to the Charity Commission's general guidance on public benefit.

Achievements performance and impact of Covid 19

The Charity carries out a wide range of activities in pursuance of its charitable aims:

The Masjid was greatly impacted and restricted in its activities during the year due to covid lockdown restrictions. However, the Masjid still endeavoured to achieve as much as possible. Government guidelines were implemented, risk assessments carried out by newly appointed Covid-19 safety officers and volunteers. During the lockdown and the month of Ramadan volunteers visited and donated food parcels to members of all communities and faiths. Many members of our community lost their lives during the pandemic. May The Almighty grant them the highest place of Jannah in the Hereafter. Our heartfelt condolences to all those who lost loved ones.

Structure, governance and management

MTI is registered as a Charity with The Charity Commission under charity no: 700817

As stated on page 1 Masjid e Tauheedul Islam has three appointed Trustees. The day to day management of the Masjid’s affairs is the responsibility of the elected voluntary Executive Committee. Supporting the Executive Committee is a group of Sub Committees which manage the strategic direction of the Masjid’s activities.

Reference and administrative details

See preceding page under 'Charity Information'.

Names of the charity trustees who manage the charity

All trustees are named on the preceding page under 'Charity Information'.

2

Masjid E Tauheedul Islam Trustees’ annual report for the period ended 31 December 2020

Financial review and reserves policy

Funds available are sufficient to permit the charity to continue in operation in the medium to long term, together with the continued support from the donors. The day to day running of the Masjid is financially supported by voluntary contributions from members of the Masjid. The Masjid has other investment properties that are rented out to generate additional income

The reserves of the Masjid have been classified as invested in Endowment Funds and unrestricted reserves to serve Masjid e Tauheedul Islam and its immediate and wider community. The mosque building being Waqaf property is classified as permanent endowment and therefore under the restricted funds category. Other reserves are maintained at a level where cash flow is available for upkeep and maintenance of all assets of the charity and any future expansion requirements.

There are no uncertainties about the charity continuing as a going concern. The Trustees actively review all major risks which the Charity faces and drawn up a risk assessment which is reviewed at every meeting. The Trustees are satisfied that all systems are in place and arrangements have been made to manage any risks identified.

Statement of Trustee’s responsibilities

The Trustees are responsible for preparing the Trustees’ Annual Report and Financial Statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure of the charitable company for that period in preparing these financial statements, the trustees are required to:-

h Select suitable accounting policies to be applied consistently

h Observe the methods and principles in the Charities SORP

h Make judgements and estimates that are reasonable and prudent

h State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements and,

h Prepare the financial statements on the going concern bases unless it is inappropriate to presume that the charitable company will continue in operation.

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, and the provisions of the trust deed. They are also responsible for safeguarding the assets of the Charity and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements.

Approved by the Trustees and signed on its behalf by:

Ali Mohmed Vika Date: 23/09/2021 Trustee

3

Masjid E Tauheedul Islam

Independent Examiner's Report to the Trustees of Masjid E Tauheedul Islam

I report to the trustees on my examination of the accounts of Masjid E Tauheedul Islam (the Trust) for the period ended 31 December 2020.

Respective responsibilities of trustees and examiner

The charity's trustees are responsible for the preparation of the accounts in accordance with the Charities Act 2011 ("the Act").

The charity's trustees consider that an audit is not required for this year under section 144 of the Act and that an independent examination is needed.

It is my responsibility to:

Basis of independent examiner’s statement

My examination was carried out in accordance with general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a 'true and fair' view and the report is limited to those matters set out in the statement below.

Independent examiner's statement

In connection with my examination, no material matters have come to my attention which gives me cause to believe that in, any material respect:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

The appointed independent examiner of the trust:

M A Ibrahim (FCCA) for and on behalf of Date: 23/09/2021 M.A.I (Accountants) Limited 7 St Andrews Street Blackburn Lancashire BB1 8AE

4

Masjid E Tauheedul Islam Statement of financial activities for the period ended 31 December 2020

Notes
Unrestricted
Total
funds
funds
2020
Income
3
£
£
£
Income and endowments from:
Donations and legacies
94,814
-
94,814
Charitable activities
54,965
-
54,965
Investments
46,515
-
46,515
Other
1,644
11,526
13,170
Total
197,938
11,526
209,464
Expenditure
4
Expenditure on:
Charitable activities
168,756
11,526
180,282
Net income/(expenditure) for the year
29,182
-
29,182
Reconciliation of funds
Total funds brought forward
1,751,490
3,338,863
5,090,353
Net incoming resources for the year
29,182
-
29,182
Transfer between Funds
0
0
Total funds carried forward
1,780,672
3,338,863
5,119,535
Restricted/
Endowment
Total
2019
£
114,629
70,191
42,525
3,010
230,355
227,654
2,702
5,087,651
2,702
(0)
5,090,353

5

Masjid E Tauheedul Islam Balance Sheet At 31 December 2020

Notes
Unrestricted Endowment
Total
funds
funds
2020
£
£
£
Fixed assets
Tangible assets
5
660,241
3,338,863
3,999,104
Investments
942,430
942,430
1,602,671
3,338,863
4,941,534
Current assets
Cash at bank and in hand
190,271
-
190,271
190,271
-
190,271
Creditors:amounts falling due within one year
Trade creditors and accruals
6
12,270
-
12,270
Net current assets
178,001
-
178,001
Net assets
1,780,672
3,338,863
5,119,535
Funds of the Charity
7
Unrestricted funds
1,780,672
-
1,780,672
Endowment Waqaf funds
-
3,338,863
3,338,863
Total funds
1,780,672
3,338,863
5,119,535
Total
2019
£
4,008,085
794,555
4,802,640
303,674
303,674
15,962
287,712
5,090,353
1,751,490
3,338,863
5,090,353

Approved by the Board of Trustees and signed on its behalf by

Faruk Bharucha Date: 23/09/2021 Trustee

6

Masjid E Tauheedul Islam Notes to the Accounts for the period ended 31 December 2020

Basis of preparation

1 Basis of accounting

The accounts have been prepared on the accruals basis, under the historical cost convention, and in accordance with the Financial Reporting Standard 102 and charities SORP (FRS 102) effective 1 January 2019, published by the Charity Commission in England & Wales.

The charity is a public benefit entity.

2 Accounting Policies

Income

Income from charitable activities and voluntary donations are included in full in the Statement of Financial Activities when received. The value of services provided by volunteers has not been included.

Expenditure

Expenditure is included in the accounts on an accruals basis.

Depreciation

Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than endowment land and buildings , at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:

Fittings and equipment

5%

Investments

Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the profit and loss account.

Unrestricted funds

Unrestricted funds are donations and other incoming resources receivable or generated for the charity without further specified purpose and are available as general funds.

Restricted funds

Restricted funds are funds subject to specific trusts, which may be declared by the donor(s) or with their authority (e.g. in a public appeal) or created through legal process, but still within the wider objects of the charity. Restricted funds may be restricted income funds, which are spent at the discretion of the trustees in furtherance of some particular aspect(s) of the objects of the charity, or they may be endowment funds, where the assets are required to be invested, or retained for actual use, rather than spent.

Endowment funds

Endowment Waqaf funds as applied to mosque property is a religious endowment. The properties under Waqaf endowment are dedicated to Allah SWT for public benefit on a perpetual basis. Restricted Fixed Waqaf funds cannot be gifted, granted or disposed.

7

Masjid E Tauheedul Islam Notes to the Accounts for the period ended 31 December 2020

3
Analysis of income
Donations and legacies
Members contributions
Donations
Total
Charitable activities
Parent contributions
Other
Total
Income from investments
Rental income
Total
Other
Interest income
Solar electricity income
Total
Total income
4
Analysis of expenditure
Expenditure on charitable activities
Wages
Employee pension
Casual wages
Examination expenses
Heat and light- Masjid
Heat and light- Madrassah
Rates
Water charges
Cleaning and consumables
Bank charges
Insurance
Repairs and maintenance
Waste disposal cost
Equipment expensed
Depreciation
Exhibition costs
Telephone and internet
Subscriptions and license
Stationery, postage and printing
Sundry expenses
Accountancy fees
Payroll fees
Independent examiner's fee
Total
Total expenditure
HMRC JRS grant
Restricted
Unrestricted
income
2020
funds
funds
Total funds
£
£
£
72,360
-
72,360
22,454
-
22,454
94,814
-
94,814
52,128
-
52,128
2,837
-
2,837
54,965
-
54,965
46,515
-
46,515
46,515
-
46,515
142
-
142
1,502
-
1,502
11,526
11,526
1,644
11,526
13,170
197,938
11,526
209,464
Unrestricted
Restricted
2020
funds
funds
Total funds
£
£
£
85,142
11,526
96,668
1,240
-
1,240
3,272
-
3,272
-
-
-
17,224
-
17,224
8,907
-
8,907
3,174
-
3,174
6,016
-
6,016
4,551
-
4,551
28
-
28
526
-
526
19,577
-
19,577
720
-
720
3,106
-
3,106
8,982
-
8,982
-
-
-
729
-
729
934
-
934
2,769
-
2,769
102
-
102
575
-
575
882
-
882
300
-
300
168,756
11,526
180,282
168,756
11,526
180,282
2019
Prior year
£
84,590
30,039
114,629
68,510
1,681
70,191
42,525
42,525
196
2,814
-
3,010
230,355
2019
Prior year
£
91,977
755
2,631
7,331
23,496
13,297
2,953
6,957
1,268
20
694
57,481
-
2,795
8,983
950
715
1,272
2,325
218
500
736
300
227,654
227,654

8

Masjid E Tauheedul Islam Notes to the Accounts for the period ended 31 December 2020

5
Land, buildings, equipment and fittings
Land and
property
£
Cost
At 1 January 2020
3,915,369
At 31 December 2020
3,915,369
Depreciation
At 1 January 2020
-
Charge for the year
-
At 31 December 2020
-
Net book value
At 31 December 2020
3,915,369
At 31 December 2019
3,915,369
5a Investments at Cost
At 1 January 2020
Additions / Improvements
At 31 December 2020
6
Creditors
2021
Analysis of creditors:
£
Trade creditors
11,470
Accruals
800
12,270
Fittings and
equipment
£
179,653
179,653
86,935
8,982
95,917
83,735
92,717
Investment
Properties
£
794,555
147,875
942,430
2020
£
15,362
600
15,962
Total
£
4,095,021
4,095,021
86,935
8,982
95,917
3,999,104
4,008,086
Total
£
794,555
147,875
942,430

7 Analysis of fund assets and liabilities

Tangible fixed assets
Current assets
Current liabilities
Unrestricted
Endowment
Total
funds
funds
2020
£
£
£
1,602,671
3,338,863
4,941,534
190,271
-
190,271
(12,270)
-
(12,270)
1,780,672
3,338,863
5,119,535

9

Masjid E Tauheedul Islam Notes to the Accounts for the period ended 31 December 2020

8
Details of certain items of expenditure
2021
£
Independent examiner’s fees
300
2020
£
300

9 Transactions with trustees and related parties

There were no benefits, expenses or remuneration paid to the Trustees or persons connected to them.

10 Employees
Average number of employees
2020
Number
24
2019
Number
25

No employee received emoluments in excess of £60,000

10